Author: Theresa Sweeney

Editor’s Note: September Newsletter Operating Instructions

Posted on by Theresa Sweeney

For the second consecutive year, NMPF is devoting its September newsletter to updating members on progress made so far this year on crucial issues for dairy farmers and the cooperatives they own. While August has been a busy month for dairy – as you can see in our article updating the latest developments – Washington tends to take a slower pace in late summer because of the annual congressional recess. That makes Labor Day week a great chance to take stock of what’s been accomplished so far, before the hectic calendar of autumn takes hold and additional developments gather in speed and frequency, with a farm bill looming, critical legislation yet to pass and the Federal Milk Marketing Order process moving forward.

Here’s how to proceed: Start with the update, then work through this team-by-team update of NMPF’s work so far in 2023. We hope you find this account of challenges met so far this year to be useful. We look forward to more in the upcoming months. Thank you, again, for this opportunity to serve.

NMPF’s Galen Discusses Federal Order Hearing, WOTUS Updates

Posted on by Theresa Sweeney

Chris Galen, NMPF’s senior vice president of membership services and strategic initiatives, discusses the second week of USDA’s national hearing on Federal Order modernization, which focused on updating the milk composition formula. NMPF witnesses this week included member cooperative staff experts and dairy farmers, who effectively discussed the need to have the FMMO pricing formula reflect the rise in milkfat and solids over the past two decades. Galen also discussed EPA and the Army Corps of Engineers’ revised definition of the “waters of the U.S.”, which conforms to a recent Supreme Court ruling.

 

As Hearing Moves Forward, Dairy’s Path is Becoming Clearer

Posted on by Theresa Sweeney

USDA’s Federal Milk Marketing Order (FMMO) hearing is well underway, and thus far its progress is much as expected. With NMPF’s proposed modernization plan serving as its bedrock, the topics under discussion very much reflect the areas we identified as key areas of improvement to FMMOs. At the same time, cross-examination and counter-proposals from other parties have been thorough, and at times, off-base.

Unsurprisingly, those questions and perspectives reflect the vested interests of the questioners, with changes often presented as zero-sum games in which the questioner’s ideas and opinions just-so-happen to benefit its bottom line. Our position at NMPF is a little different. We recognize that any proposal USDA puts up to a producer vote will need to meet a balance of interests, as admittedly, some regions, sizes or business models may benefit more than others depending on the issue. That’s a simple fact of reality in the world of policy progress. In that sense, we’re not always arguing specifically for the benefit of one party – we’re defending the consensus we’ve crafted that provides the greatest benefit to the industry as a whole, dairy farmers, processors, and consumers alike, because that’s the only approach that will bring the lasting improvements for the entire dairy industry.

This is why we at NMPF can’t help but smile a bit when we hear someone bring up an idea that we considered – and discarded – as far back as two years ago, when we began holding more than 200 meetings among farmers, cooperative analysts and industry-leading economists that generated our comprehensive improvement plan. We’ve literally been there and done that. But interested parties must have their say, and differing proposals can be brought before USDA – and in fact, they should be, so as to serve the important interests of transparency and continued consensus.

This is where all those meetings, and the thorough preparation our cooperative-led team has made for this generational opportunity for improvement, reaps dividends. We’ve faced tough questions. We’ve developed industry-leading analysis. We’ve even “war-roomed” the hearing process itself, meeting to discuss anticipated critiques of our proposal and preparing authoritative responses. Our approach is exhaustive, but never exhausting, because we’ve always kept our eyes focused on the ultimate goal of a modernized, fairer, more robust system of milk pricing for dairy farmers. And with each step toward that goal, we feel we’re only gaining more momentum – one that in the end will benefit everyone, even those who, at this moment, are offering alternatives aimed at simply boosting their narrower self-interests.

Leadership isn’t easy. As this is being published, we still have several weeks of proposals to wade through, after which further discussion and USDA consideration begins. But thus far we’re gratified that our leadership on this issue has taken dairy thus far. We set out to modernize the system. We worked with USDA, which decided it was time to examine that modernization. Now we’re explaining and justifying our proposals, with dairy’s brightest and most articulate analysts, economists and farmers testifying to the value of what we painstakingly crafted and impressing upon all of agriculture just how seriously we’ve taken this mission. We look forward to showing why our comprehensive proposal – the unanimous choice of dairy cooperatives that produce more than two-thirds of the nation’s milk — is the best approach for dairy’s future.

This occasion is incredibly important, and we’re rising to it. We look forward to continued progress.

 

Jim Mulhern

President & CEO, NMPF

 

NMPF’s Galen Discusses NMPF’s Federal Order Modernization Efforts

Posted on by Theresa Sweeney

Chris Galen, NMPF’s senior vice president of membership services and strategic initiatives, discusses NMPF’s Federal Milk Marketing Order (FMMO) modernization efforts. Dairy experts and government officials are gathered in Carmel, IN, for what’s expected to be five to seven weeks of testimony and discussion of proposals to update and improve the FMMO system, which last saw a major revision in 2000. Following USDA’s initial presentations, the hearing will then launch into discussions of specific issues placed within the scope of the hearing, including; milk composition; surveyed commodity products; Class III and Class IV formula factors; the Base Class I skim milk price; and Class I and Class II price differentials.

FMMO Hearing Heralds Farmer-Led Progress for Dairy, NMPF Says

Posted on by Theresa Sweeney

The first day of USDA’s once-in-a-generation hearing on federal milk pricing represents a critical moment for dairy’s future, one in which the National Milk Producers Federation intends to lead, President and CEO Jim Mulhern said today.

“Thanks to the tireless efforts of dairy farmers and their cooperatives, this industry is poised for progress as Federal Milk Marketing Order modernization is now in sight,” Mulhern said, as dairy experts and government officials gathered in Carmel, IN, for what’s expected to be five to seven weeks of testimony and discussion of proposals to update and improve the FMMO system, which last saw a major revision in 2000. “NMPF’s comprehensive proposal for improvements to the system forms the basis of this hearing, and through our members’ depth of expertise and unmatched team of dairy farmers and cooperative analysts, we are prepared to advance our industry’s need for these updates.”

Following USDA’s initial presentations, the hearing will then launch into discussions of specific issues placed within the scope of the hearing, including; milk composition; surveyed commodity products; Class III and Class IV formula factors; the Base Class I skim milk price; and Class I and Class II price differentials.

After the hearing’s conclusion, entities involved in the hearing then have a period of time to respond to the testimony, followed by a USDA draft decision, then more discussion, and ultimately a vote among dairy farmers on a final proposal, likely in the second half of 2024.

Because of the hearing’s complexity and the multi-step process of formulating and approving a final plan afterward, Mulhern noted that the hearing itself is far from the culmination of the process. Still, as the centerpiece of milk-pricing efforts, the next few weeks will be the most intense for public discussion of how to create a better milk-price system for dairy farmers – a moment NMPF has spent literally years waiting for.

“Though far from the final word, this national hearing stage is a critical phase that starts a foreseeable timeline for a new system to become real,” Mulhern said. “That’s exciting for our industry. It took a long time, and incredible effort, to get to where we are today. With the leadership I know our member cooperatives will provide, it can only lead to a brighter tomorrow.”

NMPF’s Galen on FDA’s Draft Plant-Based Labeling Guidance

Posted on by Theresa Sweeney

Chris Galen, NMPF’s senior vice president of membership services and strategic initiatives, discusses NMPF’s latest effort to prevent misleading labeling on Dairy Radio Now. While FDA’s draft guidance on plant-based beverages acknowledges the public health concern regarding nutritional confusion, it falls short of ending the decades-old problem of misleading plant-based labeling using dairy terminology, he says. Galen discusses the comments NMPF submitted to FDA this week that emphasize the importance of transparent product labeling to ensure consumer understanding and informed purchasing decisions.

 

July CWT-Assisted Dairy Export Sales Totaled Over 4 Million Pounds

Posted on by Theresa Sweeney

CWT member cooperatives secured 36 contracts in July, adding 3.2 million pounds of American-type cheeses, 44,000 pounds of butter, 679,000 pounds of cream cheese and 130,000 pounds of whole milk powder to CWT-assisted sales in 2023. In milk equivalent, this is equal to 36.7 million pounds of milk on a milkfat basis. These products will go to customers in Asia, Oceania, Central America, the Caribbean and Middle East-North Africa, and will be shipped from July through December 2023.

CWT-assisted 2023 dairy product sales contracts year-to-date total 27.6 million pounds of American-type cheese, 809,000 pounds of butter, 24,000 pounds of anhydrous milkfat, 5.9 million pounds of cream cheese and 31.4 million pounds of whole milk powder. This brings the total milk equivalent for the year to 548.9 million pounds on a milkfat basis.

Exporting dairy products is critical to the viability of dairy farmers and their cooperatives across the country. Whether or not a cooperative is actively engaged in exporting cheese, butter, anhydrous milkfat, cream cheese, or whole milk powder, moving products into world markets is essential. CWT provides a means to move domestic dairy products to overseas markets by helping to overcome U.S. dairy’s trade disadvantages.

The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT will pay export assistance to the bidders only when export and delivery of the product is verified by the submission of the required documentation.

NMPF’s Jonker Addresses Dairy Sustainability at Two International Forums

Posted on by Theresa Sweeney

Dr. Jamie Jonker, NMPF Chief Science Officer, spoke at the inaugural Agriculture Working Group of G20, International Symposium on Sustainable Livestock Transformation, held July 17-18 in Anand, India. In his role as Chair of the International Dairy Federation Science Program Coordinating Committee, Jonker used examples from U.S. dairy to discuss the role of animal health, genetics and nutrition on dairy farm economic, environmental and social sustainability. Maintaining healthy animals and reducing disease incidence increases milk sales while reducing greenhouse gas intensity and antimicrobial use.

On July 24, Dr. Jonker joined antimicrobial resistance (AMR) experts from around the world at the virtual GLG-UN Food Systems Summit event Country Progress and Political Action on AMR in Agrifood Systems: Building Towards the UNGA High-Level Meeting on AMR in 2024. As a member of the Global Leaders Group on AMR, he stressed the importance of the One Health approach which considers animal health, human health and the environment. This approach addresses the need for additional innovation to support additional biosecurity and animal health interventions which maintain animal health and reduce the need for antimicrobial use.

Scholarship Fundraising Raffle Live

Posted on by Theresa Sweeney

NMPF’s annual scholarship fundraising raffle is now live, running through this year’s Joint Annual Meeting that concludes Nov. 15 when winners are announced. Prizes this year include American Express gift cards, Target gift cards, a Cabot Creamery Premium Gift Box, and more. The raffle can be accessed here.

The NMPF National Dairy Leadership Scholarship Program supports Master’s and Ph.D. students conducting research important to dairy farmers. The scholarship program is largely funded through the raffle fundraiser, making ticket purchases essential to its funding. Sustaining this program means ensuring that critical research benefiting the entire dairy community can continue.

Scholarship winners for 2023 selected by the NMPF Scholarship Committee included five graduate students who are conducting research in areas that will benefit dairy cooperatives and producers. Scholarships, announced to NMPF’s Board of Directors in June, were awarded to:

  • Alanna Staffin, a Ph.D. candidate in Integrative and Biomedical Physiology at Penn State University, whose research focuses on the effects of palmitic and stearic acids on mammary gland uptake, gene expression, and metabolism in lactating dairy cows.
  • Alyssa Thibodeau, a MS candidate in Food Science and Technology and Oregon State University, whose research addresses upcycling of whey to produce craft organic acid-based beverages or vinegar with novel yeast and bacteria co-cultures.
  • Bhaswati Chowdhury, a MS candidate in Biological Sciences – Dairy Science at South Dakota State University, whose research focuses on the control of persistent environmental Listeria monocytogenes within the dairy processing plant using genomic and phenotypic approaches.
  • Luke Fuerniss, a Ph.D. in Animal Science at Texas Tech University, with research focusing on beef genetics in the dairy management system, evaluating the effects of management systems and maternal genetics.
  • Usman Arshad, a Ph.D. in Animal Nutrition at University of Florida, whose research focuses on choline and its role in hepatic metabolism and performance in dairy cows.

NMPF’s Castaneda Advocates for Dairy in Switzerland

Posted on by Theresa Sweeney

NMPF’s Jaime Castaneda pushed to protect common food names at the July 10 World Intellectual Property Organization’s (WIPO) general assembly in Geneva, Switzerland. NMPF’s executive vice president for policy development and strategy represented the U.S. dairy sector as well as other manufacturers of common-food-named products.

The Consortium for Common Food Names (CCFN), which NMPF’s trade policy team staffs, holds observer status in the organization because of its leadership on protecting common names like “parmesan” and “feta.” Castaneda advocated for a balanced approach that protects the rights of common names users while still honoring legitimate geographical indications (GIs). NMPF’s engagement with WIPO – an influential organization that has traditionally supported an agenda that has favored GI interests – is critical for countering the European Union’s common name monopolization campaign and keeping markets open for U.S. dairy producers around the globe.

Castaneda also joined a non-governmental organizations session with WIPO Director General Daren Tang and met with government representatives from the United States and elsewhere who participated in the assembly.

While in Geneva, Castaneda also met with World Trade Organization (WTO) officials and government representatives on July 11-13 about the upcoming WTO Ministerial Conference taking place Feb. 26-29, 2024. Castaneda participated in sessions with the New Zealand and Australian Ambassadors to the WTO, Chairman of the Dispute Settlement Committee Marco Molina, WTO Deputy Director General Angela Ellard and several country delegations to discuss agricultural priorities for the upcoming February ministerial, including WTO dispute settlement reform and market access.